Bitcoin Price Sinks 10% As Market Braces For Macro Storm Ahead
20 Settembre 2021 - 4:17PM
NEWSBTC
Bitcoin price has shed 10% in a single day in an increasingly
dangerous macro climate. Although the ultra-scarce cryptocurrency
is claimed to be a hedge against catastrophic economic events,
there is no telling how the volatile asset could react when it does
finally arrive. With the stock market on shaky ground and precious
metals melting down further, is the top cryptocurrency and the rest
its altcoin brethren about to experience a bleed out similar to
Black Thursday? Or is this just a shakeout using nervous market
sentiment over what ends up being a non-event? And which event are
we referring to? Bitcoin Price Sheds 10% Alongside Bearish Stock
Market Sentiment The cryptocurrency bull market has been cut short
of expectations, causing a consolidation phase and bringing the
market to a state of fear. Related Reading | New To Bitcoin? Learn
To Trade Crypto With The NewsBTC Trading Course As if sentiment
wasn’t frightened enough in crypto from the 50% collapse in May,
another 20% flash crash weeks ago froze bulls and price action in
place. Another try for up over this weekend was promptly rejected
with another 10% fall today. Bitcoin price sank by 10%, but has yet
to produce new monthly lows | Source: BTCUSD on TradingView.com Are
corrections getting smaller, or is there something else going on
that could make the 10% only the beginning of something more? A
potentially dangerous macro situation could present a mixed
situation for the consolidating cryptocurrency. Dow Jones Dips As
Dangerous Macro Storm Brews Bitcoin price has already recovered
more than $1,000 since the bell rang at the official Monday morning
market open. The forceful selloff started overnight after the
weekly close, potentially due to stock market weakness. The macro
environment is on shaky ground considering a potential catastrophic
default of China’s second-largest real estate developer,
Evergrande. The default has Lehman Brothers-type implications,
enough to cause domino effect and potential economic collapse and
recession. The Dow Jones fell 1.87% during the same 24-hour period
as Bitcoin’s 10% collapse, but given cryptocurrency’s notorious
volatility the two situations are of similar magnitude. Normally
stable metals have also suffered furthering the extended macro
madness. The Dow Jones its looking heavy | Source: DJI on
TradingView.com The Evergrande situation could ultimately turn into
another scenario where an unprecedented amount of fiat currency is
essentially printed to cover the debts the real estate giant can’t
cover. Bailouts were made an example by Satoshi Nakamoto, who
called out such an instance in the cryptocurrency’s Genesis Block.
“Chancellor on brink of second bailout for banks,” the Times
headline reads. Related Reading | Bitcoin Golden Cross: Everything
You Need To Know About The Bullish Signal These bailouts saved the
stock market and the economy back then, and the strategy was used
again to combat COVID. Can the economy withstand another flood of
capital? Or will central banks and governments be forced to step in
and let it all come crashing down? Most importantly, how does
Bitcoin perform in any of the above scenarios? Follow
@TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram.
Content is educational and should not be considered
investment advice. Featured image from iStockPhoto, Charts from
TradingView.com
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